Shanghai Banking loan portfolio quality survey: real estate overdue increase

Updated: October 20, 2015  Views: 74

Geographically risk levels, in the range of Shanghai Yangtze River Delta radiation, said finance lease said that the risk of southern Zhejiang region, especially in Wenzhou, Jinhua and other cities in the north of Zhejiang significantly higher than the year these patches have been very strict project approval And the overall risk has been higher than in Northern cities in southern Jiangsu, the company this year almost no approval by the North of financing projects.

Trainee reporter Yang Yan Shanghai reported

Bad banking loans still 'double up' pressure. Even in non-performing loan ratio below the national average of Shanghai, loan quality downside trend also difficult to avoid.

21st Century Business Herald reporter learned from multiple sources, the current situation, the potential risks of Shanghai offsite credit and leasing project began exposed, while the real estate business loans overdue situation has also worsened, but the banks and finance leasing companies, financial and related institutions, has made adjustments to the new business year, and accelerate the bad assets out of the table.

According to CBRC statistics, as of the first half of 2015, the National Commercial Bank NPL ratio was 1.5%, up 0.25 percentage points over the beginning. The 21st Century Business Herald reporter from a number of banks in Shanghai trade office that, as in the first half, Shanghai Banking NPL rate rose 0.04 percentage points over the beginning, reaching 0.92 percent, according to the convention, it is expected to be around 1% at the end. overdue loans and non-performing loan ratio reached 151 percent, up 3.8 percentage points over the beginning.

'There are also some decline in provision coverage, and loan loss reserves increased by an even less', there are bankers in Shanghai revealed.

The central bank [microblogging] Shanghai headquarters Shanghai three quarterly monetary statistics run data show that real estate development loan growth has slowed. Meanwhile, the Shanghai Banking Regulatory Bureau also strengthened supervision of the relevant circumstances, clear to real estate development companies and development projects for high-risk the whole caliber financial monitoring.

Credit risk gathering places

Shanghai banks on asset quality is concerned, since this year, the concern is that lease financing projects and off-site exhibit credit risk.

Investigate its reason, more than the bank believes that this is based on the real economy down. And this year, financial leasing industry looks bad. Finance leasing companies to corporate finance, a large part of the funds from bank credit, to invest in is not limited to the local area, its Project risks may arise directly transmitted to the bank.

A finance lease Shanghai who declined to be named told the 21st Century Business Herald reporter, this year's performance of its traditional manufacturing sector is generally good, such as machine tools, spare parts, printing and packaging, logistics, electronics and other bad debt rate has The increases. In addition, bad debt rate and customer groups constitute a great relationship. 'customer base is mainly small and medium sized private enterprises sector NPL ratio increased very significantly, so this year we also put in the amount of shrinkage of the private enterprises.'

One side is the defect rate of SMEs increased, on the other side, there are large conglomerates project appears overdue loans, or bad debt clues.

Thus, it became one of offsite loans form a big reason. For example, these large conglomerates, although not based in Shanghai, but the window company set up in Shanghai, Shanghai financing from financial institutions. There are bank sources, the large central enterprises appear inkling of bad loans the case began last year.

According to bank insiders, remote credit Shanghai banking industry, some of it is due to resolve the non-performing assets. 'For example, a bank for a loan project in Shanghai's broken, the head office level in the country looking for a deliberately disk access The company, which companies put this issue buy assets of Shanghai, at the same time get a loan, 'said industry sources, these projects began to safe places, but not without problems after representatives.

As the proportion of bad debt rate increases, said finance leases person, for example, according to his business areas, the traditional manufacturing sector, doubling last year's NPL ratio, the book is expected to increase this year's poor 50% -60%.

'On one hand, this year under the terms of the more effort to improve the report, non-performing assets sold off, peel, do asset securitization, etc. On the other hand, the situation is bad in the industry, the internal index will be adjusted this year, scoring tighter overall Performance indicators requirements will decline, empty out the funds to do more low-risk, low-cycle industries, such as health, education and so on, 'said a finance lease source said.

Geographically risk levels, in the range of Shanghai Yangtze River Delta radiation, said finance lease said that the risk of southern Zhejiang region, especially in Wenzhou, Jinhua and other cities in the north of Zhejiang higher than this year these patches of project approval has been very strict. The overall risk has been higher than in Northern cities in southern Jiangsu, the company this year almost no approval by the North of financing projects.

May be evidence that business is mainly concentrated in the Yangtze River Delta, Nanjing Bank, compared to its 2014 Annual Report and 2015 semi-annual report this year, Zhejiang replace Shanghai, becoming more serious bad assets exposed areas.

Real Estate overdue increase

In addition to traditional manufacturing, wholesale and retail industry is more concentrated exposure to non-performing assets, the concern is that Shanghai real estate overdue loans in the banking sector is also on the rise.

There are bankers reflected, this year, part of the Group's corporate real estate development, commercial property and fixed assets decreased quality of project loans, real estate loans overdue increased while the real estate field, especially in places of large real estate and operating property loans.

'The first half of this year, the Shanghai real estate development funds in place this year, an increase well below the real estate development and investment growth, which also shows the financial pressure housing prices,' said banking sources said.

'For the real estate-related businesses, we will be as highly sensitive for approval object is not granted is the norm, particularly to third-tier cities,' said a finance lease said. Also have the City firm who in Shanghai that he did not participate in real estate development loans .

But there are banks in Shanghai, told the 21st Century Business Herald reporter, Shanghai local property market, real estate development project risk control, compared with loans to SMEs, 'is a good direction to lend.'

Related data 21st Century Business Herald reporter obtained show that, overall, the Shanghai banking industry has tightened the real estate development loans.

The latest statistics also another central bank Shanghai headquarters of the evidence, the Shanghai real estate development loans the third quarter, growth has slowed in the third quarter of the city real estate development loans increased by only 5.24 billion yuan, up 1.26 billion yuan less than the growth, which increase the commercial space development loans 12.84 billion yuan, an increase of nearly 050 million yuan, while three quarters of real estate development decreased by 9.83 billion yuan, up by more than 16.19 billion yuan, of which reduce government land reserve for loan 9.59 billion yuan up by more than 17.32 billion yuan.

'The government land development in mitigating the one hand, the downstream demand in real estate development is not so big, on the other hand, also because the government's overall debt management.' Foregoing City firm who told the 21st Century Business Herald reporter, said on Shanghai local real estate development project, loan quality is higher than the surrounding areas.

'The greatest risk, or commercial real estate,' the city firm analysts said the impact on the real Internet Mall, as well as Shanghai rising rents, to some extent, curbed the pace of rapid development of commercial real estate.

In this regard, the Shanghai Banking Regulatory Bureau said that close attention to the commercial real estate project risk profile, high-risk real estate development companies and development projects to monitor the implementation of the full aperture of funds, combined with Shanghai city and economic characteristics, the development of macro-prudential regulation within its jurisdiction the real estate credit program.


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